Payward, the parent company of cryptocurrency exchange Kraken, has secured full regulatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA). Announced on October 12, 2026, this clearance follows preliminary approval granted in May and allows Payward to serve retail, professional, and institutional investors under the emirate’s regulatory framework. The company expects to begin serving UAE customers in the coming weeks, though no specific launch date has been announced.
The initial rollout will enable Kraken users in the UAE to trade cryptocurrencies via spot and margin markets using pairs denominated in UAE dirhams (AED), facilitating direct deposits and withdrawals in local currency. This structure aims to simplify access by eliminating the need for currency conversion prior to funding accounts. Additional planned services include on-chain staking, tokenized equities through xStocks, and Krak for transfers, subject to applicable regulatory permissions.
Payward’s expansion also targets institutional clients, offering over-the-counter (OTC) spot trading and access to Kraken Prime for professional liquidity services. OTC transactions allow large investors to execute trades directly rather than placing orders on public exchanges.
This approval marks a significant milestone for Kraken’s global footprint, demonstrating its ability to navigate complex regional regulatory landscapes. By securing full VARA authorization, Payward moves beyond preliminary status to operational readiness, positioning itself as one of the few major exchanges with comprehensive licensing in Dubai. The integration of AED-denominated trading pairs addresses a critical friction point for local users, potentially accelerating adoption among both retail and institutional segments who previously faced barriers in fiat on-ramping.
From a Market Structure perspective, the inclusion of institutional tools like OTC trading and Kraken Prime signals a strategic focus on high-volume, sophisticated capital flows rather than just retail speculation. This dual-track approach aligns with Dubai’s broader ambition to establish itself as a global hub for regulated digital asset activity. However, the actual impact on market share will depend on execution speed and user experience once the service launches in the coming weeks.
